April 19 — Bed Bath & Beyond Inc (BBBY.O) has spoken with advisors and lenders before filing for bankruptcy that could come in the next few weeks, Bloomberg Law reported Wednesday, citing people familiar with the conversations.
The company is also considering financing options to help fund itself during bankruptcy, according to the a report.
Bed Bath did not immediately respond to a Reuters request for comment.
Shares of the troubled retailer were up 47 cents in early trade. Shares have fallen about 86% since the company said in January it was exploring options including bankruptcy.
Bed Bath planned in February to raise about $1 billion through a preference stock offering and warrants and managed to bring in $360 million from the complex deal, but later ended the deal.
In March, it again announced plans to sell $300 million worth of its shares and warned that it may have to file for bankruptcy if the sale fails.
Bloomberg reported Wednesday that filing for Chapter 11 bankruptcy could come before April 26, the deadline by which BedPath seeks to raise funds. The report said the filing decision is not final and plans may change.
Once considered a killer of the household goods category, the New Jersey-based company has seen demand slump in recent years as its marketing strategy to sell more brand-name products failed in stores.
BidPath said last month it was seeking shareholder approval for a reverse stock split in the range of 1-for-5 to 1-for-10. Earlier in April, its board urged shareholders to approve the split, and said that if the plan failed, bankruptcy would be imminent.
Additional reporting by Granth Vanik and Ananya Maryam Rajesh in Bengaluru
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